Is DBS shares worth buying? At ~$33/share, seems expensive and won’t be able to grow much further

Interest margin will be compressed soon. I will avoid Singapore banks

People buy shares for 2 reasons:

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1) Capital appreciation

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What makes you think that at ~$33/share, DBS is considered "expensive" and there won't be much room to grow further? How did you derive at this perspective? Based on gut feel? Based on current prices? If everyone thinks like you, there won't be any buy volume for DBS. Everyone would be rushing to sell DBS at these prices.

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However, if you were to deep dive and look deeper using data and statistics, DBS in May 2021 had a Price/Earnings Ratio of 13.57 (at a price of $29.55) as compared to the last closing value of 10.83 (at a price of $32.80).

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This means, in May 2021, you need to pay $13.57 for $1 of DBS's earnings versus now where you just need to pay $10.83 for $1 of DBS's earnings.

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Does it seem expensive to you now?

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2) Passive Income

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DBS's dividend payout fluctuated between $1.40 to $1.70 pre / post-covid with 2022 payout of $1.44. This would represent a yield of 4.39% at current prices. For a company without gearing to produce these levels of yields, when assessing risk v.s. rewards, this might seem attractive to some. https://www.dividends.sg/view/D05

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While on the surface, it looks like DBS is nearing its ATH prices, but if you deep dive further into the numbers, there might be a reason its trading at these levels. I'm not advising you its a buy at these levels, its just important to consider why there are people buying at these levels.

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"The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs" Warren Buffett